Cryptocurrency Market Drop, Fixed?
South Korean government officials have reportedly been caught insider trading. They sold all of their cryptocurrency remains and profited just before the regulators announced crypto regulatory measures. The country’s Financial Supervisory Service is probing the example.
A Case of Government Insider Trading
At a meetup of the National Assembly’s Committee on Thursday, January 18, the Financial Supervisory Service( FSS) confirmed that someone hired with them indeed invested in cryptocurrencies and sold them just before the government announced crypto regulatory measures, local media reported.
A right-wing lawmaker said, as reported by Joongang Ilbo:
“There is intelligence that FSS staff sold all of the virtual money that they invested in simply prior to the announcement of the government’s measures.”
” We have confirmed the intelligence,” FSS Governor Choi Heung-sik declared.” We have confirmed that some public officials have done such a number,” Chief of the Office of the Prime Minister, Hong Nam-ki, also added: The news outlet has also pointed out that the lawmakers called for” thorough investigation and also punishment suitable,” and mentioned them underlining.
It is a tremendous situation for civil servants to influence the market and addition profits.
Chosun developed,” It is a likelihood that the moral fortune dispute will spread if the government uses the inside information and profits from virtual money transactions while the financial approvals write a hard-line plan saying that’ the cryptocurrency transaction is gambling ‘.”
FSS Crypto Policies
The Korean Public Service Ethics Act” exclusively curtails the stock trading of public officials in order to prevent misappropriation of an internal report,” Chosun pointed out. Nonetheless, since cryptocurrency is currently not defined as a financial asset or money,” there is no system of ethics and no code of conduct for virtual money investment in the FSS regulations .” Nonetheless,” the misuse of internal data could lead to punishment,” the publication added.
Recently, the FSS advised its employees to refrain from trading cryptocurrencies, stating that” If the managerial officers engage in speculative deals, it will be difficult for the public to understand ethically,” Chosun likewise reported.
On Tuesday, the FSS announced that it has created a Virtual Currency Task Force which has two departments: a” virtual money counterpart” and a” virtual currency checkpoint,” Asia Today explained. The former is dedicated to cryptocurrency-related chores while the latter is a consultation figure of crypto-related inspections and supervisions.
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